Canada Stocks Rise as RIM Rallies Amid Lenovo’s Plans

Jan. 24 (Bloomberg) -- Canadian stocks rose, briefly rising
to the highest level since 2011, as Research In Motion Ltd.
drove a rally in technology shares after Lenovo Group Ltd. said
it’s considering a deal with the BlackBerry maker.

The Standard & Poor’s/TSX Composite Index added 29.57
points, or 0.2 percent, to 12,823.62 at 4 p.m. in Toronto.
Trading volume was 7.6 percent above the 30-day average. The S&P
500 briefly topped 1,500 for the first time since 2007. The
Canadian dollar declined to an almost 10-week low.

“There’s a lot of green so far,” said John Kinsey, who
helps manage about C$1 billion of assets at Caldwell Securities
Ltd. in Toronto. “People are feeling that 2013 might be a
little better year than 2012, and the markets are creeping up a
little bit every day.”

The S&P/TSX has risen 3.1 percent so far this year amid
optimism the global economy is recovering. Technology and
health-care companies have led the rally, increasing more than
10 percent. Raw-material stocks have fallen 0.7 percent for the
biggest decline among 10 groups in the measure.

Economic Data

American economic data also helped lift the market today.
Claims for jobless benefits in the world’s largest economy
unexpectedly dropped to a five-year low. The index of American
leading indicators rose in December by the most in three months.

“The U.S. coughs, we get pneumonia,” said Chyanne Fickes,
a fund manager at Toronto-based Stone Asset Management Ltd.,
which manages C$700 million. “Given the jobless claims being
better, that backs up better growth down the road for the United
States, which bodes well for Canada.”

Technology and health-care shares had the biggest gains in
the S&P/TSX today among 10 groups, advancing at least 1.7
percent. Raw-material and utility companies fell.

RIM rallied 2.9 percent to C$17.80, the highest since
December 2011. The shares have risen 51 percent so far this
year. RIM began a review of its strategic options last year
after losing market share to smartphones such as Apple Inc.’s
iPhone and Samsung Electronics Co.’s Galaxy, raising speculation
that it could be a takeover target.

Earlier today, RIM dropped as much as 5.4 percent after
Apple posted its slowest profit growth in a decade.

Energy Shares

Energy shares rose as oil climbed amid a narrowing spread
between West Texas Intermediate crude in the U.S. and London’s
Brent. Encana added 1.5 percent to C$19.63. Canadian Natural
Resources rose 1.6 percent to C$30.67.

Methanex Corp. rallied 8.2 percent to C$34.88. The company
announced a 10-year natural gas supply agreement with Chesapeake
Energy Corp. Separately, the shares were raised to outperform
from market perform at Raymond James Financial Inc. by equity
analyst Steven Hansen.

Agrium advanced 2.8 percent to C$113.90. Fourth-quarter
profit excluding one-time items was “slightly above” $2 a
share, buoyed by demand for crop nutrients, Calgary-based Agrium
said today in a statement. Agrium was expected to earn $1.71 a
share, the average of 22 analysts’ estimates compiled by
Bloomberg. In November the company, which also produces potash
and nitrogen-based fertilizer, forecast $1.50 to $1.90 a share.

The company plans to release its full fourth-quarter
results on Feb. 22, according to the statement.

Major Drilling Group International Inc. tumbled 15 percent,
the most since December 2008, to C$10.17. The provider of
mineral-drilling services said fiscal fourth-quarter revenue
will be lower than previously expected.